Proposed Wisconsin mine still years from opening

APPLETON, Wis. (AP) -- While building a new iron-ore mine is a gargantuan task, it also requires several intermediate steps that can each be daunting by itself. That means construction of a controversial mine in northern Wisconsin probably won't start for several years.

Mining company Gogebic Taconite wanted to dig a giant iron mine in far northwestern Wisconsin, but it refused to move forward until legislators eased the regulatory path. That happened earlier this month when Republican Gov. Scott Walker signed a polarizing mining law that he said would create hundreds of jobs, despite the objection of opponents who feared the consequences to the pristine environment.

The next steps are in flux, but history suggests actual construction of the mine is still years away. That doesn't even include a near-certain legal fight that mining opponents have promised.

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The first step is filing for a mining permit with the state's Department of Natural Resources. The request would trigger a review by federal and state agencies that would take about two years, The Post-Crescent of Appleton reported (http://post.cr/114H18b ).

Next, plans would have to be developed for supporting and operating the mine. The mining company would need access to large-scale electrical power and transportation by rail or road, as well as well-trained workers.

Gogebic Taconite has filed a letter of intent with the DNR and likely will begin exploratory drilling when the weather warms up, said Ann Coakley, the director of the agency's waste and materials management program. An application for a mining permit is at least two years away, she added.

A message left at the company's Hurley office by The Post-Crescent wasn't immediately returned.

Gogebic Taconite must give at least 12 months' notice before applying for a mining permit, although it can begin sharing plans with state agencies and others at any time, Coakley said. The company would probably need at least a year to explore the area, take drill samples and formulate a business plan before it begins the permit process, she said.

Nearly as daunting as obtaining a mining permit is installing or upgrading the infrastructure needed to run a mine, said Tony Sertich, commissioner of Minnesota's Iron Range Resources and Rehabilitation Board. Transportation and power are two of the biggest obstacles in siting a new mine, he said.

Minnesota and Michigan are well-versed in mining issues, as mining companies have operated there for more than 100 years. Highways and roads leading to mines in those states are lined with high-voltage power lines to handle the demand.

The power company for much of northern Wisconsin, Xcel Energy in Eau Claire, is keeping an eye on developments in the area but can't determine what changes would be needed until there's a plan ready for review.

"They have to go back out and explore and better define the deposit," Donovan said. "Once they get that information, they can come back to us and we'll sit down like we would with any customer and talk about their needs."

Transportation is another key factor. Tom Beekman, the planning chief for the state Department of Transportation's northwest region doesn't think an iron mine would have much effect on highways or roads because moving the iron pellets by truck would be too expensive.

The Transportation Department wouldn't make any changes to highways unless a company's transportation plan required heavy use of a state highway, Beekman said.

"You can chase a lot of proverbial ghosts in this business by what may happen," he said. "We tend to wait until something's in motion, and if nobody files for a permit we are chasing ghosts."

CN Rail operates a rail line close to the likely mining site. Company spokesman Patrick Waldron said that line is "well-suited" to serve an iron mine and details on upgrading the existing line would be discussed with a company building a mine.